Budget 2022 Expectations: Real Estate is the second largest employer in the country after agriculture, infact realty contributes nearly 8% to the total GDP, making it a crucial pawn in the economic recovery for the country. Relaxation in taxes and waivers or reductions on GST, a change in the definition of affordable housing are among other expectations from the upcoming union budget.
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1. A hike in the Rs 2 lakh tax rebate on housing loan interest rates to at least INR 5 Lakh. Experts also ask for deductions for home loan principal repayment, over and above the existing 80C.
2. Definition of affordable housing should be changed. Affordable housing is a unit with carpet area up to 90 sq. m. in non-metropolitan cities and towns, and 60 sq. m. in major cities and valued up to Rs 45 lakh for both. Experts argue that while the size of units as per its definition is relatively appropriate, prices of units are not viable across most cities. For instance, a less than Rs 45 lakh budget is far too low for a city like Mumbai - it needs to be increased to at least Rs 85 lakh.
3. Industry chamber FICCI has suggested the government to provide an interest subsidy of 3-4% on housing loans.
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